The Autumn Budget 2024 presents new challenges for salon owners. Rising costs in National Insurance, minimum wage, and reduced business rates relief mean many must make tough decisions about pricing. But increasing your prices doesn't have to scare off clients – it’s about adding value and communicating effectively.
Understanding the Changes
From April 2025, your business will face:
- Employer National Insurance rising to 15%.
- Minimum wage increasing to £12.21/hour.
- Business rates relief reducing to 40%.
- Adjustments to the NI threshold (details forthcoming).
For a typical salon, this could mean thousands more in annual expenses. Planning now can help you navigate these changes sustainably.
Know Your Worth
Before making any changes to your pricing structure, take a step back to thoroughly evaluate what sets your salon or barbershop apart from the competition. Understanding your unique value proposition is crucial for effective pricing.
Identify Your Strengths
Specialist Services
Assess any specialised services you offer that others may not provide. Whether it’s a unique hair treatment or a distinctive styling technique, these services can command higher prices.